Amex Cashback Question

raspabarbas

lisyloo wrote: »

When you own your own credit card company then you can make the rules, until then you have to do what they decide.
Not being nasty or sarcastic, but it's really not up to card holders to demand they run their business a certain way that's convenient for you.

That wasn't entirely helpful. I wasn't demanding anything, I was just trying to figure out if this is my best option. I never had a credit card before.

The reason I was questioning the policy of paying the cashback into the credit account is because if I did get a card I'd be intending to pay it off in full each month so there wouldn't be a credit bill at the end of the year for them to reduce, so my query was where would this cashback go.

And the bit about charging for cash, I didn't really word that properly. I was trying to say yes, they may credit the account but the APR for cash withdrawals is so high that it isn't worth withdrawing the cash to have cash-in-hand (eg to put into a savings account) because the interest charged is so high. Or am I misunderstanding the cashback in that since they are paying it back they won't charge interest if I use it since they gave it back to me in the first place.

I'm a newbie! I wasn't being a pain just for the sake of it; I just wanted to know the details before I sign up to anything.

RB

LongTermLurker

raspabarbas wrote: »

The reason I was questioning the policy of paying the cashback into the credit account is because if I did get a card I'd be intending to pay it off in full each month so there wouldn't be a credit bill at the end of the year for them to reduce, so my query was where would this cashback go.

At the end of the year, if you've earned £200 cashback, you will have a positive balance of £200. You will have stopped using AMEX 9 months ago and gone onto, say, capital one, but when you get the amex cashback you will use that card to buy roughly £200 petrol and groceries, or whatever - you don't actually get the £200 in your pocket, but you don't spend it either. You use the CB to pay for some of that month's outgoings and pocket that money that you would otherwise have spent. You then, finally, cancel the amex card and forget about it for 6 months until you apply for it again and get another 3 months @ 5% or whatever.

raspabarbas

That makes more sense...

Thank you :-)

michaels

I note that it says no cashback is payable if you spend less than 3k in a year - does that mean that rather than stopping having reached 2k in the first 3 months you have to go on to 3k to actually get the £100 for the 2k?

MFWannabe

michaels wrote: »

I note that it says no cashback is payable if you spend less than 3k in a year - does that mean that rather than stopping having reached 2k in the first 3 months you have to go on to 3k to actually get the £100 for the 2k?

Yes; as it states you have to spend over 3k or you don't get the cashback
To me this card is quite straight forward; just use it for all usual outgoings like food and fuel (instead of using money from your account or debit card) and pay it off in full every month. This way you should easily spend over 3k in 12 months.

MFWannabe

raspabarbas wrote: »

That wasn't entirely helpful. I wasn't demanding anything, I was just trying to figure out if this is my best option. I never had a credit card before.

The reason I was questioning the policy of paying the cashback into the credit account is because if I did get a card I'd be intending to pay it off in full each month so there wouldn't be a credit bill at the end of the year for them to reduce, so my query was where would this cashback go.

And the bit about charging for cash, I didn't really word that properly. I was trying to say yes, they may credit the account but the APR for cash withdrawals is so high that it isn't worth withdrawing the cash to have cash-in-hand (eg to put into a savings account) because the interest charged is so high. Or am I misunderstanding the cashback in that since they are paying it back they won't charge interest if I use it since they gave it back to me in the first place.

I'm a newbie! I wasn't being a pain just for the sake of it; I just wanted to know the details before I sign up to anything.

RB

hi
If you've never had a credit card before you may find it very difficult to get a cashback card. You may well have to start with one of the high interest cards; paying it back in full every month; then after a certain time lenders will offer different cards to you as they will see you have good history of paying back cards

lisyloo

Freez - the post your replying to is 2 years old.
Looks like someones resurrected and old thread.